Airbnb is the company that hosts hundreds of thousands of rooms around the world, but its stock has struggled to keep pace with surging demand.
Now, the company has announced that it will be making $1.8 billion in annual operating profits this year, and it’s set to make another $1 billion next year.
Airbnb has raised $5 billion since 2015, and its stock is up more than 80% over the past year.
It’s been a hotbed of controversy since it launched in 2015, when it offered its home to people who wanted to rent out a room to friends and family for a few nights a month.
Airbnb and other services like it have become an integral part of the rental economy, as people use them to find and book properties and rooms to rent.
Airbnb hosts, however, have been struggling to make the money back on that business.
This is especially true in New York, where there are many more Airbnb listings than anywhere else.
In 2016, the city made more than $1 million in rental income.
Airbnb was also hit with a class-action lawsuit filed against it by some of its own users who claimed that the company violated the city’s Fair Housing Act by charging them a higher fee for renting out their homes to guests than other hotel guests.
Airbnb is appealing the case.
The company’s stock, however has been in a freefall for some time.
The stock is down more than 50% since 2014, and the company said last year that it planned to cut $1,500 million from its 2017 operating budget, which is about $2.6 billion.
Airbnb’s stock has also been in freefall since 2017, when the company began offering a suite of benefits to its guests, including free parking, discounted hotel upgrades, and free access to its app and website.
Airbnb did not respond to a request for comment.
Airbnb will have to pay back $1 in operating profits, plus an additional $750 million in interest, as it begins paying its $2 billion annual operating profit share to shareholders this year.
That amount is expected to be paid out by 2023.
Airbnb expects to make its remaining operating profits in 2019, when a tax holiday takes effect.
Airbnb currently has $2,000 in cash on hand.
It also has $100 million in short-term debt, $75 million in long-term bonds, and $50 million in other assets.